Inflation sees biggest jump on record in August
The ONS attributed this increase to depressed prices in August 2020 from the Governmentās Eat Out to Help Out Scheme paired with previous reductions in VAT

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UK inflation saw its largest jump since records began in August, as the rate spiked to 3.2% in a 12 month period, up from 2% year-on-year in July.
Despite the rate soaring past the Governmentās 2% inflation target, the Office for National Statisticsā (ONS) claimed that this āis likely to be a temporary changeā.
The ONS attributed this increase to depressed prices in August 2020 from the Governmentās Eat Out to Help Out Scheme paired with previous reductions in VAT.
Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: āAugust saw the largest rise in annual inflation month on month since the series was introduced almost a quarter of a century ago.Ā
āHowever, much of this is likely to be temporary as last year restaurant and cafĆ© prices fell substantially due to the āEat out to Help outā scheme, while this year prices rose.āĀ Ā
He added: āFood and non-alcoholic drink prices rose by more than last year, which also helped push up the rate. Rises in computer games prices, which are often erratic, also added upward pressure.ā
According to the ONSā consumer price index, transport made the largest upward contribution to the inflation rate of 0.87%.
This was joined by ālarge upward contributionsā across the restaurants and hotels (0.65%), housing and household services (0.65%), and recreation and culture (0.28%) industries.